“Stablecoins That Meet Compliance Standards Could Become the Internet’s ‘Money Layer,’ Canaccord Reports.”

U.S. GENIUS Act May Unlock New Potential for Stablecoins, Says Canaccord

Stablecoins could soon serve far more purposes than simply acting as trading pairs in crypto markets, thanks to new regulatory clarity following the U.S. Senate’s approval of the GENIUS Act, according to a research report from brokerage Canaccord released Wednesday.

For years, stablecoins—digital currencies pegged to assets like the U.S. dollar or gold—have struggled to reach their full potential due to regulatory uncertainty. However, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act could mark a turning point, Canaccord noted.

Securing Senate approval was a significant milestone, and passage in the House of Representatives is expected to be smoother given strong bipartisan support. Stablecoin-specific regulation in the U.S. now seems closer than ever, the report said.

“Stablecoins essentially represent a new monetary layer for the internet, offering programmable money,” Canaccord analysts wrote.

The firm’s research, led by Joseph Vafi, said that stablecoins may soon expand into broader use cases beyond simply facilitating crypto trades. “Compliant stablecoins are effectively being acknowledged by the U.S. government as equivalent to cash,” the analysts noted.

Stablecoins play a critical role in the crypto ecosystem today, serving as payment infrastructure and enabling fast, global money transfers. Canaccord believes they improve the velocity of money and enhance how businesses manage working capital. Transactions using stablecoins clear almost instantly and cost far less than traditional financial rails, the report added.

Additionally, the requirement that compliant stablecoins be fully backed could create significant demand for short-term U.S. Treasuries, Canaccord said.

“GENIUS-compliant stablecoins could become a powerful driver for further dollarization of the global economy as their adoption grows across borders,” the analysts wrote.

The report concluded that widespread stablecoin adoption would help drive continued progress and growth in the broader cryptocurrency sector.